U.S. Cellular picks new ad agency

(Adage.com) -- Chicago-based regional cellphone carrier U.S. Cellular Corp., outspent by major national carriers and facing an onslaught of competition from new cable company-provided wireless services, has moved it creative and media-buying duties for its estimated $100 million-plus advertising account to Publicis & Hal Riney and Publicis Groupe media sibling Starcom.

Alan D. Ferber, U.S. Cellular's VP-marketing, said Riney won the account following a review that included the incumbent, Doner. "Our challenge is to make our message relevant to the customer," said Mr. Ferber.

Although he indicated the carrier's ad budget will be increased, U.S. Cellular's spending is just a fraction of the $1 billion or more each of the top-tier carriers put into measured media each year; by comparison, U.S. Cellular spent $75 million in measured media in 2006.

"I'm not hung up on outspending somebody," Mr. Ferber said, adding that U.S. Cellular's business model centers on customer performance and its marketing messages will be a strong draw for consumers.

Jamie King, Riney's managing director, said that on a regional basis "the budget goes a long way." He said the major carriers are basing their selling strategies on network performance and price, both of which have become commoditized. "We can go against the pain point -- customer service," he said.

U.S. Cellular, with 6 million customers -- making it about one-tenth the size of AT&T's mobility unit and Verizon Wireless -- operates in 150 markets in 26 states primarily in the Midwest, Northwest and New England and Mid-Atlantic states.

(This article appeared on ChicagoBusiness.com's sister Web site AdAge.com)